2015-11-12 08:00:00 CET
2015-11-12 08:00:05 CET
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - SEPTEMBER 2015
Mariehamn, 2015-11-12 08:00 CET (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT November 12, 2015, 9.00 AM
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - SEPTEMBER 2015
Consolidated sales of the Viking Line Group during the period, January 1 -
September 30, 2015 rose to 403.1 million euros (EUR 401.1 M during January 1 -
September 30, 2014). Operating income totalled EUR 22.5 M (9.5). Net financial
items totalled EUR -2.9 M (-6.3). Consolidated income before taxes amounted to
EUR 19.7 M (3.2). Income after taxes totalled EUR 16.2 M (2.5).
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. The economic downturn in Finland is an uncertainty factor,
but recent bunker price developments are currently having a favourable effect
on earnings. The overall assessment of the Board of Directors is that in 2015,
operating income will improve noticeably compared to operating income in 2014,
which is better than according to the Board's last assessment.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the period, January 1 -
September 30, 2015 rose to 403.1 million euros (EUR 401.1 M during January 1 -
September 30, 2014). Operating income totalled EUR 22.5 M (9.5). Net financial
items totalled EUR -2.9 M (-6.3). Consolidated income before taxes amounted to
EUR 19.7 M (3.2). Income after taxes totalled EUR 16.2 M (2.5).
Passenger-related revenue decreased by 1.0 per cent to EUR 364.9 M (368.5),
while cargo revenue increased by 18.7 per cent to EUR 35.1 M (29.6). Net sales
revenue decreased by 0.8 per cent to EUR 286.9 M (289.2).
Consolidated operating income improved mainly due to lower operating expenses.
Operating expenses decreased by 4.4 per cent to EUR 244.3 M (255.6). The items
that decreased the most were bunker (vessel fuel) expenses and salary and other
employment benefit expenses. The decrease in bunker expenses is explained by
lower average bunker prices combined with the Group's continued efforts to
optimize the bunker consumption of its vessels. Salary and other employment
benefit expenses decreased by EUR 3.4 M or 3.7 per cent.
During the third quarter, July 1 - September 30, 2015, consolidated sales
increased by 2.5 per cent to EUR 164.1 M compared to the year-earlier quarter
(EUR 160.1 M during July 1 - September 30, 2014). Third quarter operating
income amounted to EUR 30.1 M (22.0).
The Board of Directors sees that the Group's action programme aimed at
improving operational efficiency is continuing to have a positive impact on
operating expenses.
SERVICES AND MARKET TRENDS
The Viking Line Group provides passenger and cargo carrier services using seven
vessels on the northern Baltic Sea. The Group's vessels served the same routes
as during 2014.
The number of passengers on Viking Line's vessels during the report period was
5,066,883 (5,089,760). During the report period, Viking Line decreased its
market share on the Helsinki (Finland)-Mariehamn (Åland Islands,
Finland)-Stockholm (Sweden) route by 3.2 percentage points to 43.0 per cent. On
the Turku (Finland)-Mariehamn/Långnäs (Åland Islands)-Stockholm route, market
share was at the year-earlier level, 56.9 per cent. In cruise services between
Stockholm and Mariehamn, market share increased by 3.2 percentage points to
57.1 per cent. On the Helsinki-Tallinn (Estonia) route, market share decreased
by 1.0 percentage points to 24.1 per cent. On the short route over the Sea of
Åland between Mariehamn and Kapellskär (Sweden), market share decreased by 1.5
percentage points to 42.3 per cent. The Group had a total market share in its
service area of 34.8 per cent (35.0).
Viking Line's cargo volume was 99,371 cargo units (96,554). Viking Line
achieved a cargo market share of 21.9 per cent (21.8).
INVESTMENTS AND FINANCING
The Group's investments amounted to EUR 8.0 M (6.3).
On September 30, 2015 the Group's non-current interest-bearing liabilities
amounted to EUR 178.2 M (201.8). The equity/assets ratio was 42.2 per cent,
compared to 36.1 per cent a year earlier.
At the end of September 2015, the Group's cash and cash equivalents amounted to
EUR 93.5 M (81.9). Net cash flow from operating activities amounted to EUR 29.7
M (12.3).
FINANCIAL REPORTING
This Interim Report was prepared in compliance with International Financial
Reporting Standards (IFRSs) and was drawn up as a summary of the financial
statements for the period in compliance with IAS 34. Estimates and judgments as
well as accounting principles and calculation methods are the same as in the
latest annual financial statements. Recognized income taxes are based on an
estimated average tax rate, which is expected to apply throughout the financial
year. This Interim Report is unaudited.
ORGANIZATION AND PERSONNEL
The average number of Group employees was 2,765 (2,848), of whom 2,068 (2,114)
worked for the parent company. Land-based personnel totalled 665 (664) and
shipboard personnel totalled 2,100 (2,184).
In addition to the Group's own employees, the Viking XPRS was staffed by an
average of 241 (237) people employed by a staffing company.
Ulf Hagström, B.Sc. (Mechanical and Energy Engineering), became a member of
Group Management on September 1, 2015 in his role as the new Vice President in
charge of Marine Operations & Newbuildings. Mr Hagström succeeds Tony Öhman,
who has retired.
RISK FACTORS
Since the Year-end Report was published, no changes have occurred that affect
the Group's short-term assessment of the risks in its business operations.
Special risks during the immediate future are primarily related to bunker
prices. Fluctuations in bunker (vessel fuel) prices have a direct impact on the
Group's earnings. In order to partly offset the risk of higher bunker prices,
the Group has entered into fixed-price agreements related to a portion of its
estimated bunker consumption during the period April 1 until December 31, 2015.
ONGOING LEGAL ACTIONS
On February 27, 2015, the Helsinki District Court announced its judgment in a
case between Viking Line and the Finnish State regarding fairway charges levied
during the years 2001-2004. According to the judgment, the Finnish State will
be required to pay approximately EUR 12.4 M in accordance with Viking Line's
claim as well as legal expenses plus interest. If the judgment becomes final,
it will affect Viking Line's financial statements positively with a
corresponding amount. The Finnish State has appealed the case and the
assessment of Viking Line's Board of Directors is that the judgment will not
become legally binding during the current year.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2015
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. The economic downturn in Finland is an uncertainty factor,
but recent bunker price developments are currently having a favourable effect
on earnings. The overall assessment of the Board of Directors is that in 2015,
operating income will improve noticeably compared to operating income in 2014,
which is better than according to the Board's last assessment.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
Jul 1, Jul 1, Jan 1, Jan 1, Jan 1,
2015- 2014- 2015- 2014- 2014-
EUR M Sep 30, Sep 30, Sep 30, Sep 30, Dec 31,
2015 2014 2015 2014 2014
--------------------------------------------------------------------------------
SALES 164.1 160.1 403.1 401.1 527.4
Other operating revenue 0.1 0.1 0.3 0.5 0.7
Expenses
Goods and services 46.0 44.3 116.2 111.8 148.1
Salary and other employment 29.6 30.1 88.5 91.9 120.8
benefit expenses
Depreciation and impairment 6.7 8.0 20.3 24.6 31.8
losses
Other operating expenses 51.7 55.8 155.8 163.7 213.6
------------------------------------------------
134.0 138.1 380.8 392.0 514.3
OPERATING INCOME 30.1 22.0 22.5 9.5 13.7
Financial income 0.5 0.7 3.8 0.9 29.0
Financial expenses -3.2 -2.0 -6.7 -7.2 -10.4
INCOME BEFORE TAXES 27.4 20.7 19.7 3.2 32.3
Income taxes -5.4 -4.0 -3.4 -0.7 -1.8
INCOME FOR THE PERIOD 22.0 16.7 16.2 2.5 30.6
Income attributable to:
Parent company shareholders 22.0 16.7 16.2 2.5 30.6
Earnings per share before and 2.03 1.55 1.50 0.23 2.83
after dilution, EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
Jul 1, Jul 1, Jan 1, Jan 1, Jan 1,
2015- 2014- 2015- 2014- 2014-
EUR M Sep 30, Sep 30, Sep 30, Sep 30, Dec 31,
2015 2014 2015 2014 2014
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD 22.0 16.7 16.2 2.5 30.6
Other comprehensive income
Items that may be transferred
to the income statement
Translation differences -0.3 0.0 0.0 -0.5 -0.9
Investments available for sale 0.6 - -0.2 - 0.0
------------------------------------------------
0.3 0.0 -0.2 -0.5 -0.9
COMPREHENSIVE INCOME FOR THE 22.3 16.7 16.0 2.0 29.7
PERIOD
Comprehensive income
attributable to:
Parent company shareholders 22.3 16.7 16.0 2.0 29.7
CONSOLIDATED BALANCE SHEET
EUR M Sep 30, Sep 30, Dec 31,
2015 2014 2014
--------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 0.7 0.7 0.6
Land 1.1 1.1 1.1
Buildings and structures 10.3 11.1 10.8
Renovation costs for rented 0.8 0.6 0.6
properties
Vessels 328.6 346.9 340.1
Machinery and equipment 6.1 7.1 6.7
Investments available for sale 25.9 0.0 26.1
Receivables 0.3 0.5 0.3
Total non-current assets 373.7 368.0 386.3
Current assets
Inventories 17.5 16.3 16.1
Income tax assets 0.1 1.3 0.3
Trade and other receivables 41.0 47.2 29.3
Cash and cash equivalents 93.5 81.9 101.1
Total current assets 152.0 146.7 146.8
TOTAL ASSETS 525.7 514.7 533.1
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves -0.2 0.0 0.0
Translation differences -0.9 -0.4 -0.8
Retained earnings 221.0 184.2 212.3
------------------------------
Equity attributable to parent 221.8 185.6 213.3
company shareholders
Total equity 221.8 185.6 213.3
Non-current liabilities
Deferred tax liabilities 31.4 29.7 31.4
Non-current interest-bearing 178.2 201.8 197.5
liabilities
Total non-current liabilities 209.6 231.5 228.9
Current liabilities
Current interest-bearing 19.3 19.3 23.5
liabilities
Income tax liabilities 3.1 1.7 0.0
Trade and other payables 71.9 76.6 67.4
Total current liabilities 94.3 97.6 91.0
Total liabilities 303.9 329.1 319.8
TOTAL EQUITY AND LIABILITIES 525.7 514.7 533.1
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2015- 2014- 2014-
EUR M Sep 30, Sep 30, Dec 31,
2015 2014 2014
--------------------------------------------------------------
OPERATING ACTIVITIES
Income for the period 16.2 2.5 30.6
Adjustments
Depreciation and impairment 20.3 24.6 31.8
losses
Capital gains from non-current 0.0 -0.2 -0.2
assets
Other items not included in 0.0 1.1 2.1
cash flow
Interest expenses and other 4.4 5.0 6.8
financial expenses
Financial income, Alandia - - -27.9
Försäkring Ab
Interest income and other -0.1 -0.1 -0.2
financial income
Dividend income -1.6 0.0 0.0
Income taxes 3.4 0.7 1.8
Change in working capital
Change in trade and other -11.7 -16.2 1.7
receivables
Change in inventories -1.4 -1.3 -1.1
Change in trade and other 5.9 2.7 -7.7
payables
Interest paid -5.3 -5.9 -6.1
Financial expenses paid -0.5 -0.6 -0.8
Interest received 0.0 0.0 0.1
Financial income received 0.0 0.0 0.1
Taxes paid -0.1 -0.1 -0.2
NET CASH FLOW FROM
OPERATING ACTIVITIES 29.7 12.3 30.7
INVESTING ACTIVITIES
Investments in vessels -6.7 -5.4 -6.2
Investments in other intangible -1.3 -0.9 -1.1
and tangible assets
Divestments of other intangible 0.1 0.3 0.3
and tangible assets
Divestments of investments - - 1.6
available for sale
Payments received for - - 0.2
non-current receivables
Dividends received 1.6 0.0 0.0
NET CASH FLOW FROM INVESTING -6.3 -6.0 -5.1
ACTIVITIES
FINANCING ACTIVITIES
Amortization of non-current -23.5 -15.1 -15.2
liabilities
Dividends paid -7.6 -5.4 -5.4
NET CASH FLOW FROM FINANCING -31.1 -20.5 -20.6
ACTIVITIES
CHANGE IN CASH AND CASH -7.6 -14.2 5.0
EQUIVALENTS
Cash and cash equivalents at 101.1 96.1 96.1
beginning of period
CASH AND CASH EQUIVALENTS AT 93.5 81.9 101.1
END OF PERIOD
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
Equity attributable to parent
company shareholders
Share Translati Retaine Total
on d
EUR M capita Reserve differenc earning equity
l s es s
--------------------------------------------------------------------------------
Equity, Jan 1, 2015 1.8 0.0 -0.8 212.3 213.3
--------------------------------------------------------------------------------
Income for the period 16.2 16.2
Translation differences 0.0 -0.1 0.1 0.0
Remeasurement of investments -0.2 -0.2
available for sale
--------------------------------------------------------------------------------
Comprehensive income for the period - -0.2 -0.1 16.3 16.0
Dividend to shareholders -7.6 -7.6
--------------------------------------------------------------------------------
Equity, Sep 30, 2015 1.8 -0.2 -0.9 221.0 221.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity, Jan 1, 2014 1.8 0.0 -0.3 187.5 189.0
--------------------------------------------------------------------------------
Income for the period 2.5 2.5
Translation differences 0.0 -0.2 -0.3 -0.5
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.0 -0.2 2.2 2.0
Dividend to shareholders -5.4 -5.4
--------------------------------------------------------------------------------
Equity, Sep 30, 2014 1.8 0.0 -0.4 184.2 185.6
--------------------------------------------------------------------------------
QUARTERLY CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
2015 2015 2015 2014
EUR M Q3 Q2 Q1 Q4
--------------------------------------------------------------------------------
SALES 164.1 134.1 105.0 126.3
Other operating revenue 0.1 0.1 0.1 0.2
Expenses
Goods and services 46.0 39.5 30.6 36.2
Salary and other employment benefit expenses 29.6 30.2 28.8 28.9
Depreciation and impairment losses 6.7 7.0 6.6 7.2
Other operating expenses 51.7 55.2 48.9 50.0
---------------------------
134.0 131.9 114.9 122.3
OPERATING INCOME 30.1 2.3 -9.8 4.2
Financial income 0.5 2.2 1.0 28.1
Financial expenses -3.2 -1.9 -1.6 -3.2
INCOME BEFORE TAXES 27.4 2.6 -10.4 29.1
Income taxes -5.4 -0.1 2.1 -1.1
INCOME FOR THE PERIOD 22.0 2.5 -8.2 28.1
Income attributable to:
Parent company shareholders 22.0 2.5 -8.2 28.1
Earnings per share before and after dilution, EUR 2.03 0.23 -0.76 2.60
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
2015 2015 2015 2014
EUR M Q3 Q2 Q1 Q4
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD 22.0 2.5 -8.2 28.1
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.3 0.1 0.2 -0.4
Investments available for sale 0.6 -2.1 1.2 0.0
---------------------------
0.3 -1.9 1.4 -0.4
COMPREHENSIVE INCOME FOR THE PERIOD 22.3 0.6 -6.8 27.7
Comprehensive income attributable to:
Parent company shareholders 22.3 0.6 -6.8 27.7
SEGMENT INFORMATION, VIKING LINE GROUP
-----------------------------------------------------------------------------
Jan 1, 2015- Jan 1, 2014- Jan 1, 2014-
OPERATING SEGMENTS, EUR M Sep 30, 2015 Sep 30, 2014 Dec 31, 2014
-----------------------------------------------------------------------------
Sales
-----------------------------------------------------------------------------
Vessels 399.2 397.4 521.7
Unallocated 4.1 3.8 5.8
-----------------------------------------------------------------------------
Total, operating segments 403.3 401.2 527.6
-----------------------------------------------------------------------------
Eliminations -0.2 -0.2 -0.2
-----------------------------------------------------------------------------
Total sales of the Group 403.1 401.1 527.4
-----------------------------------------------------------------------------
Operating income
-----------------------------------------------------------------------------
Vessels 55.5 43.5 58.3
Unallocated -32.9 -34.0 -44.6
-----------------------------------------------------------------------------
Total operating income of the Group 22.5 9.5 13.7
-----------------------------------------------------------------------------
PLEDGED ASSETS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
EUR M Sep 30, Sep 30, Dec 31,
2015 2014 2014
--------------------------------------------------------------------------------
Contingent liabilities 197.5 221.4 221.1
Assets pledged for own debt 313.6 315.7 315.7
FINANCIAL RATIOS AND STATISTICS
--------------------------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2015- 2014- 2014-
Sep 30, Sep 30, Dec 31,
2015 2014 2014
--------------------------------------------------------------------------------
Equity per share, EUR 20.54 17.19 19.75
Equity/assets ratio 42.2 % 36.1 % 40.0 %
Investments, EUR M 8.0 6.3 7.2
- as % of sales 2.0 % 1.6 % 1.4 %
Passengers 5,066,883 5,089,760 6,610,146
Cargo units 99,371 96,554 129,255
Average number of employees, full-time 2,765 2,848 2,797
equivalent
Earnings per share = (Income before taxes - income taxes +/- non-controlling
interests) / Average number of shares
Equity per share = Equity attributable to parent company shareholders / Number
of shares on balance sheet date
Equity/assets ratio, % = (Equity including non-controlling interests)
/ (Total assets - advances received)
When rounding off items to the nearest EUR
1,000,000, rounding-off differences of EUR +/-
0.1 M may occur.
The Year-end Report for the financial year 2015 will be published on Thursday,
February 25, 2016, instead of Thursday, February 18, 2016 as announced earlier.
Mariehamn, Åland, November 11, 2015
VIKING LINE ABP
The Board of Directors
Jan Hanses
President and CEO
CEO Jan Hanses, jan.hanses@vikingline.com, +358-18-27000
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